Promoting Co-operative marketing of Agro-produce through tribal farmer group

(Kawant block of Vadodara, Gujrat) Faculty guide: Prof. Tapas Mandal

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DEEPAK FOUNDATION

Presentation By: Manjeet Kumar & Sanjeev Kumar Suman KIIT School of Rural Management KIIT University, Bhubaneswar Orissa
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Flow of Presentation

Introduction Objectives Methodology Process of Farmers Representative Committee Status of FRC given by the organization Comparative Study of FRC Transaction cost analysis Findings Recommendations
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Introduction
About Deepak Foundation: Deepak Foundation, a registered non-governmental organization was established in 1982 as part of the corporate social responsibility of Deepak Group of Companies (Deepak Fertilizers and Petrochemicals Corporation Limited and Deepak Nitrite Limited). The Foundation has initiated Kawant Livelihood Project (KALP) under the Vanbandhu Kalyan Yojana of the Government of Gujarat, in the Kawant block of Vadodara district.

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Rastriya Krishi Vikash Yojna

Our Project fall under the Rastriya Krishi Vikash Yojna. It has four major areas-

Horticulture

Improved Agriculture

Focus sectors under RKVY, Kawant

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Farmers Representative Committee

Farmers Representative committee is a group of 12 farmers which represents the whole farmers of the village. It has been formed by the gram Sabha and select its members from different parts (Falia) of the village. The members collect their agro-produces into a hub and sell it into the market. The main idea of FRC is that small farmers can also sell their agro-produces at the high price.

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Objective of the study

Studying the scope of promoting the marketing of agroproduces at block level of FRC. To cover 21 villages and 360 beneficiaries under this project. To identify any operational issues in smooth functioning of all 21 FRCs. To update the MIS of this project already adopted by Deepak Foundation. Audit and update register of existing as well as proposed FRCs in 21 villages.

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Methodology
Primary Research: Interview with farmers (20) and APMC brokers (5) Interview with local and big traders (5) Collection of sales data by the farmers at APMC-Bodeli Feed back meetings Secondary Data From FRC registers. Commodity prices of different markets from internet (agmarknet.com).

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Process Flow-FRC

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1. Gram Sabha in village

Through the Gram Sabha we addressed the farmers about the FRC.

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Rational behind the Gram Sabha..

Selling of agro-produces at high price due to future pricing information Reduction in transportation Cost due to cost sharing Accuracy in weighing by the use of electronic weighing machine Less brokerage charge than the normal market rate due to bulk sales Save on time and travel expenses of individual farmer
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2. Selection of the members from different parts (Falia) of the village

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Cont

Elected 12 members; taken 1-2 farmers from every falia (area) of the village Elected a President, a Secretary and a Cashier from the elected members Framed bylaws and passed a resolution based on common consensus of the FRC members.

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3. Meeting with the

To know the quantity of their agro-produce which are ready for sale.

members for marketing

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Cont.

Suggested the date of selling and other market related information (opening and closing of market, etc)

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4. Visit to the APMC and set a broker at lowest commission

Made regular communication with brokers for selling At APMC-Bodeli fixed brokers at lowest commission (Rs 1.10 per Rs 100; normal rate is Rs. 1.90 per Rs 100)

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Fixed day of collection and weighing at a common point in villages Collected the agro-produce from adjoining villages and arranged for logistics, one day before going to market leave for market early in the morning (by 3-4 am) next day

5. Fix a day for bulk weighing

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6. Selling at APMC
Through biding, millers fix the prices with brokers

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Cont.

Weigh the loaded vehicle before entered into the mill Unload the vehicle and check the stock Again weigh the unloaded vehicle Broker pay the total price

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7. Maintain the register

After every transaction in the FRC, Selling register is updated

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Cont.

Every transaction has been recorded Individual data of the farmers and the number of farmers participated has been recorded Done calculation of gross selling price, transportation cost, brokerage, labor cost and net income

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8. Feedback meeting

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Cont.

These meetings were organized to sensitize farmers about the benefits after selling through the FRC Farmers, who sold their agro-produce, addressed to others about the benefits We took the estimate of quantity to be sold next time and no. of new farmers to be added

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Status of the FRC given by the Organisation

Sr. No. VDP Village BORDHA 1 2 UNDVA 3 MANKODI 4 NARUKOT 5 BALATGAM 6 ATHADUNGRI 7 MOTISAKAL 8 KHANDIBARA 9 GELESAR 10 KAKANPUR 11 JULWANIA 12 JAMLI Other Villages 1 RAJAWAT 2 JAMBA 3 MOTIKADAI 4 ARATIA 5 DEVAT 6 BILDHA 7 SEDIVASAN 8 GAJLAVAT 5/22/12 9 CHIPAN Coming under NABARD Water shade YES YES YES YES YES Farmer Group Formed YES NO YES YES YES YES NO NO YES YES NO NO YES YES YES YES YES YES YES YES School YES Bank A/c opened YES NO YES YES YES YES NO NO YES NO NO NO YES YES YES YES YES YES YES YES Rural YES Applied for status of Farmers Club NO NO YES NO NO YES NO NO YES NO NO NO YES YES YES YES YES YES YES YES YES Agri-marketing started NO NO NO NO NO NO NO NO NO NO NO NO NO YES NO NO YES NO NO NO NO

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Establishment of New FRC

S No 1 2 3 4 5 6 Name of the Cluster Sadivasan Gojariya Athadungri Gojaria Athadungri Athadungri Name of the villages Kakanpur Jambli Bekhadiya Undwa Motisakal Khandibara Status of marketing Yes Yes Yes Yes Yes Yes

Source: Primary 5/22/12 Data

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Bank account opening

S No 1 2 3 4 5 6 Name of the Cluster Gojaria Athadungri Athadungri Sadivasan Sadivasan Gojaria Name of the villages Undwa Motisakal Khandibara Kakanpur Julwaniya Jamli Status of marketing Yes Yes Yes Yes Yes Yes

Source: Primary Data

Requirements: Certified copy of Bylaws of FRC Resolution of the FRC List of members of FRC Address proof of the President, Secretary and treasurer of FRC
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Comparative agri-Marketing Study of FRC 2009-10 SN FRC Name 2010-11

Product Total selling Quantity price (in Rs) (in Qtl) 1 2 3 4 5 6 7 8 9 10 Motikadai Aratiya Rajawat Jamba Chipan Devat Gelesar Bilda Sadivasan Khandibara 223.8 46.6 81.48 272.2 74.4 54.2 51.2 40.4 0 0 4,81,630 1,47,302 2,56,391 2,34,808 46,746 1,78,095 76,840 50,189 0 0 Product Total selling Quantity price (in Rs) (in Qtl) 307.19 50.8 71.25 350.53 160.34 44.3 83.2 70.64 68.60 60.95
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14,09,216 1,67,072 2,33,399 18,77,896 5,62,763 1,68,103 2,72,258 3,05,259 1,26,454 2,33,213

Source: Primary & Secondary Data

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S N FRC Name

2009-10 2010-11 Product Total selling Product Total selling Quantity price (in Rs) Quantity ( price (in Rs)* in Qtl)* 0 0 0 0 0 0 0 0 0 0 844.45 0 0 0 0 0 0 0 0 0 0 20,93,214 24 18 16 12 20 24 8 30 20 39 1477
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11 12 13 14 15 16 17 18 19 20

Bordha & Undwa Mankodi Narukot Athadungri Motisakal Julwaniya Gajlawat Jamli Balatgam Kakanpur Total

1,12,800 84600 75200 56,400 94000 1,12,800 37,600 1,41,000 1,02,000 1,98,135 63,35,869

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Comparative Study of FRC

Crop Amount sold (in Rs) Total quantity sold (in qntl) No of Farmers 2009-2010 2010-2011 2009-2010 2010-2011 2009-2010 2010-2011 Cotton Maize Soy bean Total 17,81,994 3,11,220 0 20,93,214 60,03,508 68,057 2,64,304 63,35,869 551.85 292.5 0 844.45 1279.20 74.44 123.4 1477 120 37 0 157
+94

232 4 15 251

+ Rs 42,42,655

+632.55 qntl

Source: Primary & Secondary

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cotton

maize soy bean 0

2009-10 17,81,994 3,11,220

2010-11 60,03,508 68,057 2,64,304

R s
10 9 8 7 6 5 4 3 2 1 0
Source: Primary & Secondary

Amount sold (in Rs) Through FRC

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cotton 2009-10 551.85 2010-11 1279.02

maize 292.5 74.44

Qnt l

soy bean 0 123.4

Total quantity sold (in qntl)

10 8 6 4 2 0
Source: Primary & Secondary

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cotton maize 200910 201011 120 232 37

No of farmers

soy bean 0 15

No of Farmers participation

Source: Primary & Secondary

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Comparative analysis of Market through a case Village: Motikadai, Sadivasan study

S. NO. 1 2 3 4 5 Name of the Farmers Ramjibhai govind bhai Kamurbhai dalmukh bhai Ramanbhai govind bhai Kanchanbhai jagat bhai Vivekbhai govind bhai Quantity of Cotton 2.00 quintal 15.20 quintal 1.20 quintal 2.60 quintal 0.20 quintal

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Cont S no. Particulars 1 2

Bodeli

Kawant

Quantity of sale 107 mann = 21.4 qntl = 2,140 kg 107 mann = 21.4 qntl = 2,140kg Selling price Price per mann = Rs 882 Price per mann = Rs 780 Price per quintal = Rs 4,412 Price per quintal = Rs 3,900 Price per kg = Rs 44.12 Price per kg = Rs 39.00 Total = 2,140 * 44.12= Rs 94,416.8 Total= 2,140 * 39.00 = Rs 83,460 Transportation Rs 1400 (tractor rent) Rs 10 per mann = Rs 1,070 cost Brokers Rs 1.10 in Rs 100 Rs 1.75 in Rs 100 commission Total broker charged = Rs 1,038.86 Total broker charged = Rs 1460.55 Total expenses Tractor fare + Broker charge + Tractor fare + Broker charge + labor charge labor charge = 1400 + 1,038.86 + 160 = 1,070 + 1460.55 + 150 = Rs 2,598.86 = Rs 2680.55 Income = Rs 94,416.8 Rs 2,598.86 = Rs 91,817.94 For 20 kg = Rs 858.11 For 1 kg = Rs 42.90 KIIT School For 1 qntl= Rs 4,290 Of Rural = Rs 83,460 Rs 2,680.55 = Rs 80,779.45 For 20 kg = Rs 754.94 For 1 kg = Rs 37.74 3333 For 1 qntl= Rs 3,774

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Profit maximization from Bodeli market

Farmers Prices at Bodeli Prices at Kawant Profit (Rs) Ramjibhai govind 200 kg @ Rs 42.90 bhai = Rs 8,580/Kamurbhai dalmukh bhai Ramanbhai govind bhai Kanchanbhai jagat bhai 1520 kg @ Rs 42.90 = Rs 65,208/120 kg @ Rs 42.90 = Rs 5,148/260 kg @ Rs 42.90 = Rs 11,154/200 kg @ Rs 38.00 = Rs Rs 980.00 7,600/1520 kg @ Rs 38.00 = Rs Rs 7,448 57,760/120 kg @ Rs 38.00 = Rs Rs 588 4,560/260 kg @ Rs 38.00 = Rs Rs 1,274 9,880/20 kg 760/@ Rs 38.00 = Rs Rs 98

Vivekbhai govind 20 kg @ Rs 42.90 bhai = Rs 858/5/22/12

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Transaction Cost analysis in ideal condition for cotton in Bodeli market

Total Quantity = 2600 kg Rate = Rs 44 per kg Total amount = Rs 1,14,400 Tractor rent = Rs 1400, Brokerage charge = Rs 1,258 Labour = Rs 150 VRP charges = Rs 78
Total transaction cost is Rs1.09 per kg

Cost per kg Cost Amount (RS) Brokerage Rs 0.53 Transportation Rs 0.48 Labor Rs 0.05 VRP Rs 0.03 Total Rs 1.09 Transaction cost/kg

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Findings

At the time of selling, local traders at Kawant do not take the exact weight of commodities. (EX.10.5kg=9.5kg) Due to emotional attachment with the brokers or age-old relationship with the traders, at time villagers sold their agroproduce at high commission charge, as they dont want to break their relationship. (Ex. of Chipan) At APMC Bodeli brokers have divided their areas according to their links, but villagers think that the allotment of the areas among brokers is legal as per APMC norms.

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Cont

All brokers in APMC Bodeli have reduced commission charges from Rs 1.90/- to Rs 1.60/- per Rs 100, due to FRC activities In case of soybean and maize, brokers have taken pre fixed higher price even if actual market price falls on day of selling. (Ex .Naswadi Case) Some brokers have also started contacting to Deepak Foundation staff directly to take produce at ever lesser commission and better terms

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Cont

In every FRC meeting apart from the members, other farmers have also started coming to attend the meeting. Sarpanches and farmers from neighbouring villages of Kawant block are approaching DF for FRC formation in their village. (Ex. Buffa village, Naswari ) All APMC officials and brokers have started offering royal treatment, whenever our staff visit APMC Video Shows of FRC made a great effect in villagers mind

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Recommendation

Regular monthly meeting of FRCs VRPs have to organize regular meetings of FRC and he has to be present at the time of weighing of agro-produce. VRP has to maintain the register of the FRC because farmers are more comfort with VRP then treasurer. The VRP charge from FRC should be on time. Reduce the gap between villagers and organization during three months (July to early September) Regular video shows of FRC can make big effects in peoples mind.

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Video

Video of FRC For Video Show in villages

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Hardik aabhar!
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